As most of you know by now (and some probably pushed the appropriate “buy” button), Amazon cut the price of the Kindle e-reader from 259 to 189 dollars last week. Some say it’s a response to the Barnes&Nobles move, which also dropped the price of the Nook e-reader, from 199 to 139 dollars. And, of course, it all comes down to Apple, as always; the new iPad has a built in e-reader and Apple could easily mesmerize the bulk of the e-reader market by offering this technology alongside all the features the iPad already packs.
So what, you might say, they’re still cashing in huge profits, as the manufacturing process of e-readers is cost effective (that means cheap). Not really. The people over at iSupply, a company that takes gadgets and breaks them into pieces (cool job) to know how much it costs to build them say that Amazon and Barnes&Noble are not making any money of their e-readers because their new trimmed down prices are equal to the production costs- corporations not making a profit, that’s weird. Well, it’s not, because the move aims to sell more e-books and the money supposedly lost by the price cut of the e-reader will be gained by a huge increase of book sales. It’s a move similar to a historical marketing stunt made by King Camp Gillette, who sold razors at a small price, but the razor blades were extremely expensive.
So don’t hope for a price cut also for the e-books. You’ll end up paying more for your e-reading experience overall, even if the actual device is apparently cheaper. And yes, it’s the same model like the one with the cheap console and increasingly expensive console content.
Via : http://www.forbes.com/2010/06/24/kindle-amazon-nook-technology-ereader.html?boxes=techchannellighttop
Also: Kindle @ Amazon.com